Osborne plan to use Labour votes hits the rocks

Jeremy Corbyn has said his party would block George Osborne's post-Brexit 'emergency Budget' - sinking the Chancellor's hopes of exploiting Labour support for Remain.

Osborne is facing a furious Tory Eurosceptic blacklash after warning Brexit would force him to raise taxes and slash spending on the NHS, schools and defence.

A senior Labour source told HuffPost UK this morning that the party "wouldn’t support any Budget that slashes public services or furthers austerity" - but Corbyn made that clear at Prime Minister's Questions today.

He told MPs:

"The Labour position is that we're going to be voting to Remain because we believe it is the best way to protect jobs, to protect families, and protect public services.

"We would oppose any post-Brexit austerity Budget just as we have opposed any austerity Budget put forward by this Government."

Cameron faced fierce criticism from Eurosceptic backbenchers in the last PMQs before the vote, with Christopher Chope MP calling out the "vindictive emergency Budget". He said:

"I’m looking forward to the British people giving me the opportunity to vote against the vindictive emergency Budget.

"If the Government is so strapped for cash, why is it still intent on spending £50bn on HS2?”

He said: "Despite the panic-driven negativity from the Remain camp and Downing Street, I hope the British people vote next week to become a free and independent nation again."

Cameron responded: "Of course Britain can survive outside the EU - but how can we do best?"

The row erupted amid speculation that Osborne could even threaten that City trading would have to be suspended the day after a vote to quite the EU.

The FTSE stock market saw £34bn wiped off its value on Tuesday following a rash of polls pointing to Brexit, and other European exchanges took fright at the prospect of Britain leaving the 28-nation bloc.

Osborne, who joined former Labour Chancellor Alistair Darling to warn of the dangers of Brexit, insisted he would have to tear up Tory manifesto pledges to cope with the shock to the economy.

“The Conservative government would do what was needed to deal with huge instability and the chaos in our economy,” he told BBC Radio 4’s Today programme this morning.

“The country would not be able to afford the size of the public services we have at the moment”.

But in a sign of the potential political chaos in Westminster should the UK vote to leave on June 23, some 57 Tory MPs signed a statement declaring that the would not vote for such a Budget.